Nemaska Lithium Inc NMKEF

EPC(Engineering, Procurement and Construction)

[juniorcal]

With EPC agreements the contractor is responsible for final completion of a project at a fixed cost and is used extensively in Africa, Australia and other parts of the mining world. With investor concern over budget blowouts and delays growing, it is gaining traction in the Americas. With EPCs the upfront negotiations are brutal, but after you shake hands, you execute together, Gili says adding that with more traditional contracts (EPCM) where the construction phase is managed together; the opposite is true: Negotiation is the easy part, and the fighting is during execution. From my experience its not material or labour costs that make projects go over budget, its delays. With EPCs everything is worked out beforehand. Its a good thing for the industry, it forces discipline.